Bank of China contributes to $1.5 billion USD syndicated revolving credit facility (RCF) to Baxter International for general corporate purposes in 2015 (Linked to Record ID#103426)

Project narrative

On July 1, 2015, financial close was reached on a deal in which a syndicate of 14 banks — including the Chicago Branch of Bank of China (BOC) — entered into a $1.5 billion USD syndicated revolving credit facility (RCF) agreement with Baxter International — an American multinational healthcare company that primarily focuses on products to treat kidney disease and other chronic and acute medical conditions — for general corporate purposes. This loan has a maturity of 5 years. This RCF replaces an older loan with the same value in 2011 (Record ID#103426). The Borrower may, at its option, seek to increase the aggregate commitment under the new U.S. facility by up to an additional $750 million. The new RCF enables the Borrower to borrow funds on an unsecured basis at variable interest rates, and contain various covenants, including a maximum net leverage ratio and maximum interest coverage ratio. The Borrower also agrees to pay for the account of each Bank a facility fee at the respective rates per annum. The applicable rate for any period shall be determined based on the publicly announced ratings ("Credit Ratings") by Moody’s, S&P and Fitch on the Borrower’s senior unsecured Debentures during such period, the applicable rate to change when and as such Credit Ratings change. As of July 2015, the facility fee based on the ratings is 0.125%. The proceeds of the RCF are used for general corporate purposes. On October 26, 2015, the borrower and the lenders entered into an amendment of the loan, which amends the “Change of Control” definition in the applicable credit agreement to remove the “continuing director” prong (clause (b) in the U.S. dollar denominated facility and clause (c) in the Euro denominated facility) from such defined term. While Bank of China contributed to this loan, the following 13 lenders contributed to the loan: Bank of America, N.A.(Syndication Agent), JPMorgan Chase Bank, N.A.(Administrative Agent), UBS AG, Stamford Branch, Deutsche Bank AG New York Branch, Barclays Bank PLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Suisse, Cayman Island Branch, Citibank, N.A.(Syndication Agent), HSBC Bank USA, National Association, Goldman Sachs Bank USA, Mizuho Corporate Bank (USA), The Toronto-Dominion (Texas) LLC, and The Bank of New York Mellon. In addition, J.P.Morgan Securities LLC, Merrill Lynch, Fenner & Smith Incorporated and Citigroup Global Markets Inc. acted as co-lead arrangers and joint bookrunners.